Question

In: Accounting

The test is divided into three sections: 1. Journalizing transactions (50%) 2. Using T-accounts (30%) 3....

The test is divided into three sections:
1. Journalizing transactions (50%)
2. Using T-accounts (30%)
3. Producing an Unadjusted Trial Balance (20%)

1. (50%) Using the Journal explained in class, please journalize the following transactions:
• Nov. 1 – John Smith invested 20,000 cash in his new business called “Goldsmith”
• Nov. 2 – Goldsmith bought a computer using 1,000 cash
• Nov. 3 – Goldsmith bought supplies for 5,000 to be paid in the near future
• Nov. 4 – John Smith withdrew 2,000 cash from Goldsmith for his personal use
• Nov. 5 – Goldsmith paid 1,000 cash for renting a location
• Nov. 6 – Goldsmith hired a new office assistant
• Nov. 7 – Goldsmith received revenues for 3,000 cash
• Nov. 8 – Goldsmith paid 2,500 cash for the supplies bought on Nov. 3
• Nov. 9 – Goldsmith asked a loan to the TD Bank
• Nov. 10 – TD Bank loaned Goldsmith 10,000 cash
• Nov. 11 – Goldsmith paid 700 cash for the first installment of the loan like this: 500 for interest, and 200 for capital.
• Nov. 12 – Goldsmith paid the utilities bill for 200 cash
• Nov 15 – Goldsmith paid the wage to the office assistant for 1,000 cash
• Nov. 19 – Goldsmith bought a new software for the business for 3,000 cash
• Nov. 21 – Goldsmith provided services to a customer for 5,000, the customer agreed to pay in the future
• Nov. 23 – The customer that was owing money to Goldsmith makes a payment of 1,000 cash
• Nov. 24 – John Smith buys a car for 5,000 cash for his personal use
• Nov. 25 – Goldsmith buys supplies for 2,000 cash
• Nov. 28 – Goldsmith receives 3,000 cash for services provided to customers
• Nov. 30 – Goldsmith pays 1,000 cash to the office assistant for his wage.
2. (30%) Based on the transactions from question 1, please create the corresponding T-accounts for each of the accounts used in the previous question. Please make sure you find the balance of each T-account.
3. (20%) Based on the balances of the T-accounts found in question 2, please build an unadjusted trial balance for Goldsmith for November 2019, please make sure that the accounts are listed in the following way: First, the assets, then the Liabilities and then the Owner’s Equity.

Expert Solution

Solution :

Journal entries

nov1. Cash a/c 20000

To capital a/c 20000

(Being capital introduce)

nov2. Computer a/c 1000

To cash a/c. 1000

(Being computer purchased for cash)

nov 3. Purchases a/c 5000

To creditors a/c. 5000

(Being supplies bought on credit)

nov 4. Drawings a/c. 2000

To cash a/c. 2000

( Being cash withdrawan by john )

nov 5. Rent a/c 1000

To cash a/c 1000

(Being amount paid for rent)

nov 6. No entry

nov7 cash a/c. 3000

To revenue a/c 3000

(Being revenue received)

nov 8. Creditors a/c 2500

To cash a/c 2500

( Being amount paid to creditors)

nov 9. No entry

nov 10. Cash a/c 10000

To bank loan a/c 10000

( Being loan taken from bank)

nov 11. Bank loan a/c. 200

Interest on loan a/c. 500

To cash a/c . 700

( Being bank installment paid)

nov 12. Utilities a/c 200

To cash a/c 200

( Being utilities bill paid)

nov 15. Wages a/c 1000

To cash a/c. 1000

( Being wages paid to office assistants)

nov 19. Software a/c 3000

To cash a/c 3000

( Being new software purchased)

nov 21. Customer a/c 5000

To sales a/c. 5000

( Being services given to customer)

nov 23. Cash a/c 1000

To customer a/c 1000

( Amount received from customers)

nov 24. Drawings a/c. 5000

To cash a/c 5000

( Being car purchased for personal purpose)

nov 25. Purchases a/c 2000

To cash a/c 2000

( Being supplies purchased for cash)

nov 28. Cash a/c. 3000

To customer a/c. 3000

( Being amount received from customer)

nov 30. Wages a/c 1000

To cash a/c 1000

( Being amount paid as wages)

ekkarill92 answered 1 year ago

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